Variable Refrigerant Flow/Volume (VRF/VRV)  (107)

In today’s world, we spend almost 90 per cent of our time indoors, in our workplaces, leisure areas and our homes. It is no secret that the built environment has been relatively slow in its embrace of information technology and automation. According to KPMG’s ‘Building a Technology Advantage’ report, fewer than 20 percent of construction and engineering executives, and major-project owners said they are re-thinking their business models, so as to incorporate new technology. Yet, it has now become a necessity, as energy efficiency becomes a more prominent topic discussion, which is leading to sweeping changes across all aspects of our lives and none more so than in the built environment. Commitment to net-zero emissions Governments are beginning to impose tighter restrictions on building use, energy consumption and emissions. Policymakers around the world are committing to net-zero emissions targets, with more than 60 countries pledging to achieve carbon neutrality by 2050. For example, the European Union (EU) is committed to become a carbon-neutral economy, with net-zero emissions by 2050 and all new buildings within the EU must be constructed as near-zero energy buildings. Meanwhile, China has legislated that at least 30 per cent of all new buildings must be ‘green’. Smart technology to better manage HVAC Technology can help optimize energy consumption and create energy efficiency in our buildings Given this new trend towards energy efficiency in the real estate sector, smart technology is needed to better manage HVAC and energy consumption. Buildings currently contribute 40 per cent of global carbon emissions, a problem exacerbated by extreme weather conditions across the globe, which increases demand for electricity, as more people rely on air conditioning for cooling. Technology can help optimize energy consumption and create energy efficiency in our buildings, alleviating many of the problems that we have today. Technology enabled by the Internet of Things (IoT) can optimize comfort and safety, while providing remote operability and access to everything from HVAC systems to security cameras. At the same time, data collection and integration with cloud-based services allow for powerful energy efficiency measures. Designing and operating Smart buildings The concept and operation of smart buildings is not new. Architects and developers have been installing separate systems to control lighting and HVAC for decades. Later systems have evolved and helped building managers control access to different areas of a site, mitigate fire risk and protect against power surges. What is new is the addition of web-based platforms, in order to allow these verticals to integrate seamlessly with each other. The building of tomorrow is achievable today, using the latest in automation intelligence to control lighting, air-conditioning and heating. With these digital solutions, everything can be controlled remotely and allow for complete control, whenever it is needed most. Increased use of smart technology The first step in managing HVAC energy is to understand exactly how much is being used and where it is used. With this information at hand, managers can highlight areas for improvement, which in turn will help a building become more efficient and ultimately, save money. Another step in managing HVAC energy is including smart technology alongside your system Another step in managing HVAC energy is including smart technology alongside your system, as it can minimize maintenance costs. Predictive fault-finding can save maintenance time and labor, as well as minimizing downtime for expensive equipment or services. It is estimated that smart-enabled predictive maintenance is three to nine times cheaper than a traditional reactive approach. Tenant and occupant satisfaction are often also higher, as systems that experience failure can be identified, repaired and re-booted quickly. Smart building systems Smart building systems, such as ABB i-bus KNX ClimaECO and ABB Cylon BACnet solutions, can combine HVAC in one holistic solution, from central control and management of heating and cooling systems, down to room-level automation. Smart systems simplify the implementation of intelligent automation in modern buildings and using pre-installed algorithms, can make autonomous decisions on things, such as adjusting lighting and HVAC levels, to reflect time of day, external environment, occupancy levels or other variables. Additionally, data collection and data analysis enabled by IoT allows for increased knowledge and better predictions of use. Working with a smart building, which is interconnected, can act and learn on this data, while providing remote access to data and analytics for human oversight. The ROI of smart technology implementation In addition to legislation driving change, being ‘smart’ provides other real benefits for developers and owners. As a building adapts to the demands of its users or the goals of its managers, it can save energy, cut emissions and reduce energy costs. More effective and efficient use of power can save money, quickly repaying initial technology expenditure Comparing energy savings to the falling cost of installing a basic smart management system, smart buildings immediately prove their worth. According to HSBC, if a smart system delivered an energy cost saving of 25 per cent, on an installation cost of US$ 37,500, for a 50,000 sq. ft building, the annual savings could be as much as US$ 23,000, giving a payback period of less than two years. More effective and efficient use of power can save money, quickly repaying initial technology expenditure. HVAC and lighting alone can account for about 50 per cent of energy use in an average commercial building, but by incorporating smart automation, managers may see decreased energy costs of up to 30 to 50 per cent. Leading the fight against climate change Technologies, such as IoT and Artificial Intelligence (AI) are crucial to help us in the fight against climate change. These technologies help users, owners, operators and facility managers interact with the buildings of the future effortlessly, with personalized comfort and maximum efficiency. Artificial Intelligence and IoT is constantly in a state of evolution, as more applications for the technology are discovered. Given the ever-changing nature of technology, the possibilities for smart buildings in the future are endless.

With the UK committed to reducing greenhouse gas emissions to zero by 2050, drastic action is needed by the government. For new-build homes, there’s a gas boiler ban coming in less than five years’ time. And for older properties, it’s likely that gas prices will continue to rise, to encourage homeowners to switch to a more sustainable alternative. Renewable heating market With this in mind, the renewable heating market is growing rapidly, albeit from a very small base – but with targets in place to keep the momentum up. The government has committed to install 600,000 heat pumps into new homes by 2028. The government has committed to install 600,000 heat pumps into new homes by 2028 People who are already living in (old and new) properties heated by renewable technology should be applauded for pioneering it – but understandably, not everyone has the confidence to give up a solution they’re familiar with, and to step into the relative unknown. And that’s why the value of transitional technologies cannot be over-estimated– both to homeowners who want to live more sustainably and to installers looking to adapt and future-proof their businesses. But the role that hybrid heat pumps can play in accelerating progress on the road to zero has been somewhat overlooked to date. Hybrid heat pumps Hybrid heat pumps combine the power of a heat pump with the familiarity of a high-efficiency boiler. The two appliances work together to provide heating and hot water, providing the ideal replacement for a combi boiler as a first step towards introducing renewable heating technology into the home. Compared to a traditional gas boiler, hybrid heat pump systems can reduce CO2 emissions by as much as 55% and have been proven to deliver up to a 50% reduction in energy bills in homes in the UK. Our Daikin Altherma hybrid heat pump’s smart programming helps to save up to 35% more energy than a traditional condensing boiler by automatically determining the most economically and energy-efficient operating combination based on energy prices, outdoor temperatures, and indoor heat capacity. Heat pump share The hybrid system’s operating mode can be shifted to more electric heat pump share As well as being quick to install, hybrid systems are designed to look and operate like a conventional boiler system and deliver like-for-like performance and comfort levels. And to give homeowners peace of mind, the heat pump can act as a back-up for the boiler, and vice-versa – meaning they’ll never be caught short. Hybrid systems are best-suited to smaller homes in urban areas, that are likely to have a combi-boiler, and where the shell of the building is not energy-efficient enough to rely on electricity alone. But as the efficiency of the building is improved and upgraded over time, the hybrid system’s operating mode can be shifted to more electric heat pump share. And while there’s a lot of talk about new homes in the renewable heating debate, hybrid technology is ideal for renovations and boiler replacements. Heating system replacements We estimate that there are 1.1 million homes across the country that would be well-served by a hybrid system. That, combined with the benefits of hybrids for both installers and consumers, is why we firmly believe in hybrid heat pumps’ potential to support a faster, easier, and more affordable transition to low carbon heating in this country. Every homeowner who buys a Daikin Altherma hybrid system gets a high-efficiency boiler for free When consumers are looking at heating system replacements, we know that complexity and disruption are barriers to purchase. Fortunately, neither is an issue with hybrids. While hybrid heat pump systems can be installed with a household’s existing boiler, to help increase uptake, we’re running a special offer at the moment whereby every homeowner who buys a Daikin Altherma hybrid system gets a brand-new, high-efficiency boiler for free. Low carbon technology And there’s no need to lose valuable floor space to a hot water cylinder or to make changes to the radiators. Hybrids aren’t just good news for homeowners; they represent a real opportunity for installers, too. At the moment, there are 1,000 heat pump installers in the UK and around 125,000 gas boiler installers. We need to transition these boiler installers towards low carbon technology – not just to drive progress on the road to net zero, but to help their businesses stay relevant and competitive. This year, in partnership with 11 of our Daikin Sustainable Home Centres across the UK, we’re running a free nationwide training program to help installers enter the renewable heating market with hybrid heat pumps. eco-Friendly hybrid solution Reducing electricity prices isn’t enough to encourage people to change the way they heat their homes Installers who complete the day-long course can expand their portfolio and gain the skills to upgrade customers to an eco-friendly hybrid solution. Reducing electricity prices isn’t enough to encourage people to change the way they heat their homes; more needs to be done to make new, clean technologies accessible and appealing. We’re doing what we can to incentivize homeowners – and installers – to embrace the possibilities of a hybrid heat pump system, but a clear funding mechanism from Government is needed as well, specifically to help with the upfront cost of upgrading (free boiler or no free boiler). While the now-closed Green Homes Grant explicitly included hybrid heat pump technology, there’s a big question as to whether the same hybrid solutions will be included in the Clean Heat Grant – the details of which are expected later this year. The answer to that question needs to be ‘yes’.

The energy transition is upon us and we are shifting today’s energy use to low and zero carbon sources. The way in which we heat and provide hot water to our homes and businesses will change, and we are developing technologies that will support this transition. A bold and pragmatic policy framework will encourage investment and drive change. BEIS Hydrogen Strategy We, therefore, welcome the publication of the Hydrogen Strategy from the Department for Business, Energy & Industrial Strategy (BEIS). This important document details the role and vision for clean hydrogen deployment at scale, in the United Kingdom, building upon the ambitions in last year’s 10 Point Plan for a Green Industrial Revolution. As an energy carrier, hydrogen has many uses that will help to decarbonize heating, transport and industry. We, therefore, welcome the government’s assurance to the public that hydrogen can be made as safe as natural gas. UK Government’s Contract for Difference The availability of low-cost hydrogen at scale is a key enabler of the deployment of hydrogen for heat Alongside the BEIS Strategy, the UK Government is publishing its proposed business model for supporting hydrogen production, in the form of a Contract for Difference. This approach has been utilized successfully for offshore wind and will enable the sector to invest in early-stage projects, and reduce the cost of hydrogen. The availability of low-cost hydrogen at scale is a key enabler of the deployment of hydrogen for heat. We believe, there is no ‘one size fits all’ solution, and a whole range of heating technologies will need to be deployed for a range of properties. Baxi Heating, as part of BDR Thermea Group, is at the forefront of developing clean heating solutions, including our ground-breaking development of hydrogen boilers. Hydrogen-ready boilers from 2025 Our work with the Hy4Heat project and associated demonstration sites in the UK show technical feasibility of this solution. We believe the government should act upon advice from the Climate Change Committee and other sources advocating a mandate that all boiler sales from 2025 should be hydrogen-ready, in order to help pre-populate a swathe of the housing stock, ready for a future conversion. Technology, energy efficiency and business models are all bit parts in the wider picture. Skilled installers and contractors will be utterly essential to success, so we are glad to see the announcement of a hydrogen sector development action plan in early 2022, setting out how the government will support companies to secure supply chain opportunities, skills and jobs in hydrogen. UK Heat and Buildings Strategy Following the Hydrogen Strategy, we look forward to several important publications in the lead up to the 26th UN Climate Change Conference of the Parties (COP26), including consultations on the role for hydrogen-ready appliances, off gas grid heating measures and the UK Heat and Buildings Strategy.